The Growth and Development Asset Management Limited (GDL) has entered into an agreement with some organisations to float a N1 billion GDL Money Market Fund.
The fund will be on offer for subscription to willing investors.
Parties to the money market fund include: GDL which is the fund manager; Goldbanc Management Associates Limited, the issuing house; United Bank for Africa (Global Investor Services Division), the custodian; Ernst & Young, the reporting accountant; Ijewere & Co, the auditor to the fund; and First Registrars & Services Limited as the registrar.
Other parties include Augusto & Co, the rating agency; STL Trustees Limited and UTL Trust Management Services Limited as joint trustees to the fund; Greenwich Securities Limited, which is the stockbroker to the issue; Matrix Solicitors as solicitors to the fund and Sterling Bank Plc as the receiving bank.
The fund is an open-ended fund that was constituted under a trust deed to invest in money market instruments and it will be opened to investors through the fund manager, GDL.
This, would, however be after the full subscription of initial 100, 000, 000 units issued. However, the fund manager will as authorised, issue additional units when required, with the consent of the trustees, subject to the registration and approval of the units to be offered by the Securities and Exchange Commission.
According to the promoters, the fund seeks to maximise return on invested capital in a coordinated and risk averse manner consistent with the preservation of capital and maintenance of liquidity by investing exclusively in investment grade money market instruments introduced duly approved by the Central Bank of Nigeria (CBN) from time to time as permissible under SEC Rule 47.
Speaking at the signing ceremony in Lagos, the Managing Director of GDL, Mr. Kolawole Ayeye, said the investment instrument would be of immense advantage to retail and high net-worth investors.
He said: “The other thing is that if you’re going to put your money in one bank you have an exposure to that one bank. But a fund being in a larger pool, even a portion of that portfolio that is allocated to banks can be spread among a few banks.
“You have the opportunity of funds which are under professional management; you have the opportunity of diversification; and the professionals managing the fund have an eye on where interest rates are going. So, it allows one to make informed choices.
“Hopefully, the returns should be slightly better than if the owners of the fund were managing it themselves.”